In Preparing a Consolidated Financial Report,the Parent Entity Consolidates

question 37

Multiple Choice

In preparing a consolidated financial report,the parent entity consolidates:

• A) The financial statements of all entities over which it has the power to exercise control.
• B) The financial statements of only those entities over which it has the power to control and in which it holds more than 50% of the voting shares.
• C) The financial statements of only those entities in which it holds more than 50% of the ordinary share capital; as a result of which it necessarily has the power to exercise control.
• D) None of the above.

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Definitions:

Social Needs

Fundamental human desires to belong to groups, including family, friends, and co-workers, and to be accepted by others.

Need For Achievement

A psychological drive or motivation to accomplish tasks, achieve excellence, and overcome obstacles.

Motives

Internal drives that prompt individuals to take action or behave in a certain way.

Internal Locus

An individual's belief that they can control their own destiny through their decisions and actions.